President Joko Widodo (Jokowi) made the statement during his second annual speech at the legislative complex, Friday.
“We have increased the use of biodiesel fuel by launching the B20 policy. It is now time to migrate to B30 that will augment biodiesel usage by 30 percent. However, we have the capacity to impose full use of biodiesel fuel (to replace diesel fuel), or the B100 policy,” the president remarked during the state of the nation address.
Apart from stepping up the use of biodiesel, Jokowi has also set his sights on the production of crude palm oil-based aviation turbine (avtur) fuel.
“We have produced avtur fuel, I expect that in future, we are able to produce CPO-based avtur fuel,” Jokowi, who wore a traditional Sasak outfit during the speech, reaffirmed.
Indonesia, one of the largest CPO producers in the world, had taken a major beating from a sharp decline in the CPO price at the global market in the past years.
Hence, since 2016, President Jokowi had implemented the policy entailing the mandatory use of 20 percent biodiesel mixed with 80 percent diesel fuel for consumers in response to the commodity’s markdown that had contributed to the trade deficit and current account deficit.
The Ministry of Energy and Mineral Resources stated that in 2019, the B20 policy has not only reduced the country’s trade deficit but also saved US$1.66 billion (Rp23.6 trillion) of the country’s foreign exchange reserves during the January-July 2019 period.
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